NBH Holdings Corp. is following up its recent failed bank acquisition in Colorado with a branch deal and name change.
The Boston bank holding company said late Monday that it had reached an agreement with Community Bankshares Inc. in Greenwood Village, Colo., to buy 16 branches and the Community Banks of Colorado name. The remaining 26 Community Banks of Colorado branches will be renamed, NBH said in a press release.
Branch deals are common for struggling banks hungry for capital. The $1.4 billion-asset Community Banks has been under a prompt corrective action directive from the Federal Reserve since February which gave it 90 days to sell itself or raise enough capital to become adequately capitalized. At June 30, the bank had yet to fulfill those goals; it was critically undercapitalized with a leverage ratio of 1.92%.
The price NBH will pay for the name and the branches was not disclosed. The companies also did not say when the transaction is expected to be completed.
NBH, which raised $1 billion in equity to execute a roll-up strategy, entered Colorado in late July when it acquired the failed $1 billion-asset Bank of Choice in Greeley from the Federal Deposit Insurance Corp. NBH, which also owns a bank in Kansas City, Mo., has said it plans to relocate its headquarters to either Denver or Kansas City.